Definition of "Rent escalator"

Jared Stout real estate agent
Jared Stout, Real Estate Agent Berkshire Hathaway HomeServices Michigan Kalamazoo-Stadium

Provision in a lease agreement allowing the landlord to raise the rental to take into account inflation, higher upkeep costs, and higher interest rates. An index may be used such as the Consumer Price Index. The occupancy ratio may be another factor in setting rentals.

 

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